Packing and Forwarding HSN Code – All You Need to Know

Packing and Forwarding HSN Code – All You Need to Know. The packing and forwarding HSN code is an important part of India’s GST (Goods and Services Tax) system. It helps classify different types of goods and services for taxation purposes. Introduced by the Central Board of Indirect Taxes and Customs (CBIC), HSN (Harmonised System of Nomenclature) and SAC (Service Accounting Code) codes are essential in making sure that goods and services are correctly identified under GST laws. These codes define which GST slab applies—0%, 5%, 12%, 18%, or 28%—and help in making GST filing easier and more accurate.
In this article, we will explore in detail what packing and forwarding HSN code means, how it is structured, what the key codes are, why it’s important to use the correct codes, and a table of essential HSN codes and GST rates related to packing and forwarding services and materials.
An Overview of Packing and Forwarding HSN Code
To understand how GST applies to packing and forwarding services, we first need to understand what the HSN and SAC codes are. HSN codes are used mainly for goods, and SAC codes are used for services. Since packing and forwarding involves both goods and services, both codes are relevant.
For service providers, SAC codes start with "99", which is the identifier used for all service categories under GST. This means that any business involved in packing, forwarding, shipping, or logistics must use SAC codes starting with 99 to ensure correct GST compliance.
These codes help categorize services based on their type and nature. For instance, packaging services for export or domestic purposes fall under specific SAC codes, while the actual materials like jute bags or plastic containers used for packing fall under different HSN codes.
The length of these codes can be four or eight digits. The four-digit SAC code represents a broad category, and the eight-digit version is more detailed and specific. The turnover of a business decides how detailed the code must be. For example, businesses with a higher turnover are required to use more detailed codes.
Using the correct packing and forwarding HSN code is necessary for correctly calculating GST, submitting returns, and avoiding penalties or confusion during audits.
Key HSN Codes for Packing and Forwarding
This section explains the main HSN and SAC codes that apply to packing and forwarding services. Each code covers a different aspect of the logistics and transportation process.
HSN 9951 – Services for Packing
This code is used when a business provides packing services, which means physically preparing goods for transportation. This includes using crates, cartons, pallets, and other protective materials to ensure safe delivery. Whether you're sealing boxes or wrapping goods in protective materials, this service falls under HSN 9951. It also includes labeling and securing products for long-distance travel. If your company only handles packing but not transportation, this is the correct code to use.
HSN 9952 – Services for Removal
This code refers to loading, unloading, and the movement of goods within the country. It is mostly used by companies that offer domestic relocation, cargo handling, or logistics within India. If your business helps shift products from one location to another within Indian boundaries, including home or office shifting services, this code applies. The focus here is on physical movement and logistics, not packaging or international shipping.
HSN 9961 – Services for Forwarding Freight
This is the code used for international shipping and freight forwarding services. It includes many important services such as customs clearance, documentation, arranging for overseas transportation, and consolidating shipments. If your business handles the complete process of shipping goods across borders—including preparing papers, dealing with customs officials, and ensuring the cargo reaches its international destination—HSN 9961 should be used.
HSN 9962 – Services for Couriers
Courier companies that offer door-to-door delivery of packages and documents use this code. These companies handle small parcels, provide tracking services, and make sure goods are delivered safely to homes and offices. If your business handles express delivery or postal-type services, this SAC code is applicable. It also covers third-party logistics providers that manage the final delivery of goods.
These HSN codes are essential for accurately billing clients, calculating the right amount of GST, and staying compliant with the tax system. Always refer to the latest government notifications or consult a tax expert when choosing the code.
Importance of Correct HSN Codes
Choosing the correct packing and forwarding HSN code may seem like a small task, but it has a major impact on your business and its compliance with GST laws. Here are some key reasons why using the correct code matters:
1. GST Compliance
The GST laws in India require businesses to declare the correct HSN/SAC code for every invoice. If the code is incorrect, the GST rate applied might be wrong, leading to underpayment or overpayment of tax. This could cause problems during audits, and businesses might be asked to pay penalties or interest for wrong tax filings. Therefore, using the correct code helps you comply with the law and avoid unnecessary complications.
2. Legal Requirement
The Indian government has made it mandatory for businesses, especially those with a turnover above the prescribed limit, to use the correct HSN/SAC code on all invoices. Failure to do this is treated as non-compliance and can lead to financial and legal issues. Using the proper packing and forwarding HSN code ensures you meet this legal requirement.
3. Preventing Tax Mistakes
Using incorrect codes can result in applying the wrong GST rate, which may either increase your tax burden or lower it unfairly. Both are problematic, as you could lose money or face inquiries from the tax department. Correct coding guarantees that your tax calculation is precise and that there are no surprises during tax assessments.
4. Customs Processing
If you are involved in import or export, the HSN codes are especially important for customs officials to determine duties and tariffs. The right code speeds up the clearance process and avoids unnecessary inspections or delays. Inaccurate codes might cause your goods to be held up at ports, leading to higher costs and late deliveries.
5. Better Record-Keeping
Using correct packing and forwarding HSN code helps in maintaining clean, accurate records that can be easily verified during audits. It ensures smooth internal documentation and builds a more professional relationship with clients and regulatory bodies.
Refer to the following detailed table to find the exact HSN codes and GST rates for different packing-related materials and services.
Table Related to Packing HSN Codes

Chapter

Description

HSN Code

Rate (%)

CESS (%)

Effective Date

Rate Revision

Other made up textile articles; sets; worn clothing and worn textile articles; rags

Sacks And Bags, Of A Kind Used For The Packing Of Goods Of Jute Or Of Other Textile Bast Fibres Of Heading 5303: Jute Sacking Bags

63051040

18%

–

01/01/2020

–

Sacks And Bags, Of A Kind Used For The Packing Of Goods Of Jute Or Of Other Textile Bast Fibres Of Heading 5303: Jute Corn (Grains) Sacks

63051020

18%

–

01/01/2020

–

Sacks And Bags, Of A Kind Used For The Packing Of Goods Of Cotton

63052000

18%

–

01/01/2020

–

Sacks And Bags, Of A Kind Used For The Packing Of Goods Of Jute Or Of Other Textile Bast Fibres Of Heading 5303: Paper Laminated Hessian Jute

63051070

18%

–

01/01/2020

–

Sacks And Bags, Of A Kind Used For The Packing Of Goods Of Man-Made Textile Materials: Other

63053900

18%

–

01/01/2020

–

Sacks And Bags, Of A Kind Used For The Packing Of Goods Of Man-Made Textile Materials: Other, Of Polyethylene Or Polypropylene Strip Or The Like

63053300

–

01/07/2017

–

Miscellaneous articles of base metal

Stoppers, Caps And Lids (Including Crown Corks, Screw Caps And Pouring Stoppers), Capsules For Bottles, Threaded Bungs, Bung Covers, Seals And Other Packing Accessories, Of Base Metal Crown Corks

83091000

18%

–

01/07/2017

–

Plastics and articles thereof

Articles For The Conveyance Or Packing Of Goods, Of Plastics; Stoppers, Lids, Caps And Other Closures, Of Plastics – Other : Other

39239090

18%

–

1/01/2020

–

Articles For The Conveyance Or Packing Of Goods, Of Plastics; Stoppers, Lids, Caps And Other Closures, Of Plastics – Stoppers, Lids, Caps And Other Closures : Caps And Closures For Bottles

39235010

18%

–

1/01/2020

–

Articles For The Conveyance Or Packing Of Goods, Of Plastics; Stoppers, Lids, Caps And Other Closures, Of Plastics – Stoppers, Lids, Caps And Other Closures : Other

39235090

18%

–

1/01/2020

–

Articles For The Conveyance Or Packing Of Goods, Of Plastics; Stoppers, Lids, Caps And Other Closures, Of Plastics – Sacks And Bags (Including Cones)Of Polymers Of Ethylene

39232100

18%

–

1/01/2020

–

Articles For The Conveyance Or Packing Of Goods, Of Plastics; Stoppers, Lids, Caps And Other Closures, Of Plastics – Boxes, Cases, Crates And Similar Articles: Insulated Ware

39231030

18%

–

1/01/2020

–

Articles For The Conveyance Or Packing Of Goods, Of Plastics; Stoppers, Lids, Caps And Other Closures, Of Plastics – Other : Aseptic Bags

39239020

18%

–

1/01/2020

–

Articles For The Conveyance Or Packing Of Goods, Of Plastics; Stoppers, Lids, Caps And Other Closures, Of Plastics – Carboys, Bottles, Flasks And Similar Articles: Insulated Ware

39233010

18%

–

1/01/2020

–

Articles For The Conveyance Or Packing Of Goods, Of Plastics; Stoppers, Lids, Caps And Other Closures, Of Plastics – Carboys, Bottles, Flasks And Similar Articles: Other

39233090

18%

–

1/01/2020

–

Waste and scrap paper or paperboard

Cartons, Boxes, Cases, Bags And Other Packing Containers, Of Paper, Paperboard, Cellulose Wadding Or Webs Of Cellulose Fibres; Box Files, Letter Trays, And Similar Articles, Of Paper Or Paperboard Of A Kind Used In Offices, Shops Or The Like – Other Sacks

48194000

18%

–

01/07/2017

–

Glass and glassware

Carboys, Bottles, Flasks, Jars, Pots, Phials, Ampoules And Other Containers, Of Glass, Of A Kind Used For The Conveyance Or Packing Of Goods; Preserving Jars Of Glass; Stoppers, Lids And Other Closures, Of Glass – Ampoules

70101000

18%

–

01/07/2017

–

70102000

18%

–

01/07/2017

–

Rubber and articles thereof

Plates, Sheets, Strip, Rods And Profile Shapes, Of Vulcanised Rubber Other Than Hard Rubber – Of Non-Cellular Rubber : Other : Tread Rubber And Tread Packing Strip For Resoling Or Repairing Or Retreading Rubber Tyres

40082940

18%

–

01/07/2017

–

Conclusion
Knowing about and using the correct packing and forwarding HSN code is more than a technical requirement—it's a crucial part of running a compliant, efficient, and professional logistics or packaging business.
By categorizing your services or goods properly under the GST regime, you avoid legal trouble, gain the trust of clients, and make tax filing easier. Whether you are an established logistics company or a new service provider, taking the time to identify and apply the correct HSN/SAC code is a wise business practice.

The packing and forwarding HSN code is an important part of India’s GST (Goods and Services Tax) system. It helps classify different types of goods and services for taxation purposes. Introduced by the Central Board of Indirect Taxes and Customs (CBIC), HSN (Harmonised System of Nomenclature) and SAC (Service Accounting Code) codes are essential in making sure that goods and services are correctly identified under GST laws. These codes define which GST slab applies—0%, 5%, 12%, 18%, or 28%—and help in making GST filing easier and more accurate.

In this article, we will explore in detail what packing and forwarding HSN code means, how it is structured, what the key codes are, why it’s important to use the correct codes, and a table of essential HSN codes and GST rates related to packing and forwarding services and materials.

An Overview of Packing and Forwarding HSN Code

To understand how GST applies to packing and forwarding services, we first need to understand what the HSN and SAC codes are. HSN codes are used mainly for goods, and SAC codes are used for services. Since packing and forwarding involves both goods and services, both codes are relevant.

For service providers, SAC codes start with "99", which is the identifier used for all service categories under GST. This means that any business involved in packing, forwarding, shipping, or logistics must use SAC codes starting with 99 to ensure correct GST compliance.

These codes help categorize services based on their type and nature. For instance, packaging services for export or domestic purposes fall under specific SAC codes, while the actual materials like jute bags or plastic containers used for packing fall under different HSN codes.

The length of these codes can be four or eight digits. The four-digit SAC code represents a broad category, and the eight-digit version is more detailed and specific. The turnover of a business decides how detailed the code must be. For example, businesses with a higher turnover are required to use more detailed codes.

Using the correct packing and forwarding HSN code is necessary for correctly calculating GST, submitting returns, and avoiding penalties or confusion during audits.

Key HSN Codes for Packing and Forwarding

This section explains the main HSN and SAC codes that apply to packing and forwarding services. Each code covers a different aspect of the logistics and transportation process.

HSN 9951 – Services for Packing

This code is used when a business provides packing services, which means physically preparing goods for transportation. This includes using crates, cartons, pallets, and other protective materials to ensure safe delivery.
Whether you're sealing boxes or wrapping goods in protective materials, this service falls under HSN 9951. It also includes labeling and securing products for long-distance travel. If your company only handles packing but not transportation, this is the correct code to use.

HSN 9952 – Services for Removal

This code refers to loading, unloading, and the movement of goods within the country. It is mostly used by companies that offer domestic relocation, cargo handling, or logistics within India.
If your business helps shift products from one location to another within Indian boundaries, including home or office shifting services, this code applies. The focus here is on physical movement and logistics, not packaging or international shipping.

HSN 9961 – Services for Forwarding Freight

This is the code used for international shipping and freight forwarding services. It includes many important services such as customs clearance, documentation, arranging for overseas transportation, and consolidating shipments.
If your business handles the complete process of shipping goods across borders—including preparing papers, dealing with customs officials, and ensuring the cargo reaches its international destination—HSN 9961 should be used.

HSN 9962 – Services for Couriers

Courier companies that offer door-to-door delivery of packages and documents use this code. These companies handle small parcels, provide tracking services, and make sure goods are delivered safely to homes and offices.
If your business handles express delivery or postal-type services, this SAC code is applicable. It also covers third-party logistics providers that manage the final delivery of goods.

These HSN codes are essential for accurately billing clients, calculating the right amount of GST, and staying compliant with the tax system. Always refer to the latest government notifications or consult a tax expert when choosing the code.

Importance of Correct HSN Codes

Choosing the correct packing and forwarding HSN code may seem like a small task, but it has a major impact on your business and its compliance with GST laws. Here are some key reasons why using the correct code matters:

1. GST Compliance

The GST laws in India require businesses to declare the correct HSN/SAC code for every invoice. If the code is incorrect, the GST rate applied might be wrong, leading to underpayment or overpayment of tax.
This could cause problems during audits, and businesses might be asked to pay penalties or interest for wrong tax filings. Therefore, using the correct code helps you comply with the law and avoid unnecessary complications.

2. Legal Requirement

The Indian government has made it mandatory for businesses, especially those with a turnover above the prescribed limit, to use the correct HSN/SAC code on all invoices.
Failure to do this is treated as non-compliance and can lead to financial and legal issues. Using the proper packing and forwarding HSN code ensures you meet this legal requirement.

3. Preventing Tax Mistakes

Using incorrect codes can result in applying the wrong GST rate, which may either increase your tax burden or lower it unfairly. Both are problematic, as you could lose money or face inquiries from the tax department.
Correct coding guarantees that your tax calculation is precise and that there are no surprises during tax assessments.

4. Customs Processing

If you are involved in import or export, the HSN codes are especially important for customs officials to determine duties and tariffs. The right code speeds up the clearance process and avoids unnecessary inspections or delays.
Inaccurate codes might cause your goods to be held up at ports, leading to higher costs and late deliveries.

5. Better Record-Keeping

Using correct packing and forwarding HSN code helps in maintaining clean, accurate records that can be easily verified during audits. It ensures smooth internal documentation and builds a more professional relationship with clients and regulatory bodies.

Refer to the following detailed table to find the exact HSN codes and GST rates for different packing-related materials and services.

Table Related to Packing HSN Codes

Chapter	Description	HSN Code	Rate (%)	CESS (%)	Effective Date	Rate Revision
Other made up textile articles; sets; worn clothing and worn textile articles; rags	Sacks And Bags, Of A Kind Used For The Packing Of Goods Of Jute Or Of Other Textile Bast Fibres Of Heading 5303: Jute Sacking Bags	63051040	18%	–	01/01/2020	–
	Sacks And Bags, Of A Kind Used For The Packing Of Goods Of Jute Or Of Other Textile Bast Fibres Of Heading 5303: Jute Corn (Grains) Sacks	63051020	18%	–	01/01/2020	–
	Sacks And Bags, Of A Kind Used For The Packing Of Goods Of Cotton	63052000	18%	–	01/01/2020	–
	Sacks And Bags, Of A Kind Used For The Packing Of Goods Of Jute Or Of Other Textile Bast Fibres Of Heading 5303: Paper Laminated Hessian Jute	63051070	18%	–	01/01/2020	–
	Sacks And Bags, Of A Kind Used For The Packing Of Goods Of Man-Made Textile Materials: Other	63053900	18%	–	01/01/2020	–
	Sacks And Bags, Of A Kind Used For The Packing Of Goods Of Man-Made Textile Materials: Other, Of Polyethylene Or Polypropylene Strip Or The Like	63053300	0	–	01/07/2017	–
Miscellaneous articles of base metal	Stoppers, Caps And Lids (Including Crown Corks, Screw Caps And Pouring Stoppers), Capsules For Bottles, Threaded Bungs, Bung Covers, Seals And Other Packing Accessories, Of Base Metal Crown Corks	83091000	18%	–	01/07/2017	–
Plastics and articles thereof	Articles For The Conveyance Or Packing Of Goods, Of Plastics; Stoppers, Lids, Caps And Other Closures, Of Plastics – Other : Other	39239090	18%	–	1/01/2020	–
	Articles For The Conveyance Or Packing Of Goods, Of Plastics; Stoppers, Lids, Caps And Other Closures, Of Plastics – Stoppers, Lids, Caps And Other Closures : Caps And Closures For Bottles	39235010	18%	–	1/01/2020	–
	Articles For The Conveyance Or Packing Of Goods, Of Plastics; Stoppers, Lids, Caps And Other Closures, Of Plastics – Stoppers, Lids, Caps And Other Closures : Other	39235090	18%	–	1/01/2020	–
	Articles For The Conveyance Or Packing Of Goods, Of Plastics; Stoppers, Lids, Caps And Other Closures, Of Plastics – Sacks And Bags (Including Cones)Of Polymers Of Ethylene	39232100	18%	–	1/01/2020	–
	Articles For The Conveyance Or Packing Of Goods, Of Plastics; Stoppers, Lids, Caps And Other Closures, Of Plastics – Boxes, Cases, Crates And Similar Articles: Insulated Ware	39231030	18%	–	1/01/2020	–
	Articles For The Conveyance Or Packing Of Goods, Of Plastics; Stoppers, Lids, Caps And Other Closures, Of Plastics – Other : Aseptic Bags	39239020	18%	–	1/01/2020	–
	Articles For The Conveyance Or Packing Of Goods, Of Plastics; Stoppers, Lids, Caps And Other Closures, Of Plastics – Carboys, Bottles, Flasks And Similar Articles: Insulated Ware	39233010	18%	–	1/01/2020	–
	Articles For The Conveyance Or Packing Of Goods, Of Plastics; Stoppers, Lids, Caps And Other Closures, Of Plastics – Carboys, Bottles, Flasks And Similar Articles: Other	39233090	18%	–	1/01/2020	–
Waste and scrap paper or paperboard	Cartons, Boxes, Cases, Bags And Other Packing Containers, Of Paper, Paperboard, Cellulose Wadding Or Webs Of Cellulose Fibres; Box Files, Letter Trays, And Similar Articles, Of Paper Or Paperboard Of A Kind Used In Offices, Shops Or The Like – Other Sacks	48194000	18%	–	01/07/2017	–
Glass and glassware	Carboys, Bottles, Flasks, Jars, Pots, Phials, Ampoules And Other Containers, Of Glass, Of A Kind Used For The Conveyance Or Packing Of Goods; Preserving Jars Of Glass; Stoppers, Lids And Other Closures, Of Glass – Ampoules	70101000	18%	–	01/07/2017	–
	Carboys, Bottles, Flasks, Jars, Pots, Phials, Ampoules And Other Containers, Of Glass, Of A Kind Used For The Conveyance Or Packing Of Goods; Preserving Jars Of Glass; Stoppers, Lids And Other Closures, Of Glass – Stoppers, Lids And Other Closures	70102000	18%	–	01/07/2017	–
Rubber and articles thereof	Plates, Sheets, Strip, Rods And Profile Shapes, Of Vulcanised Rubber Other Than Hard Rubber – Of Non-Cellular Rubber : Other : Tread Rubber And Tread Packing Strip For Resoling Or Repairing Or Retreading Rubber Tyres	40082940	18%	–	01/07/2017	–

Conclusion

Knowing about and using the correct packing and forwarding HSN code is more than a technical requirement—it's a crucial part of running a compliant, efficient, and professional logistics or packaging business.

By categorizing your services or goods properly under the GST regime, you avoid legal trouble, gain the trust of clients, and make tax filing easier. Whether you are an established logistics company or a new service provider, taking the time to identify and apply the correct HSN/SAC code is a wise business practice.